Special Report 5/2019

2019-05-13 00:00:00

Financial audit on the Special Account for Research Funds of Athens University of Economics and Business

The main objectives of the audit were to examine: I. The correct and accurate representation of the data, facts and transactions in the financial statements. II. If the Internal Control System complies with the legislative and regulatory framework and is functioning properly and gives reasonable guarantees of: a. the legality and regularity of underlying transactions, b. the safeguarding of assets and information and c. the prevention, detection, correction, investigation and monitoring of fraud and irregularities. III. If the transactions are legal and regular and comply with the principle of sound financial management.

In summary, the findings identified during the audit relate to: a. the management, monitoring and inventory of fixed assets (non-physical inventory, non-compliance with the accounting procedure for the destruction of fixed assets, mismatch of financial statements and register of fixed assets, non-compliance with procedures with regard to the purchase of fixed assets),b. the accounting of revenue, c. the management and loans of projects (in many cases the loan granted by the Special Account to the projects is not reimbursed to it), d. the customer receivables, e. the banks reconciliation with the General Accounting, f. the division of supplies and eligibility of expenditure (projects outside the regulatory and operational purpose of the Special Account ),g. the sound financial management, h.the absence of an internal operating regulation and institutionalized job descriptions, i.the absence of an internal control unit, j. the non-carrying out of lawful detentions.

Recommendations: a. carrying out an inventory of fixed assets and an identification with the Register of Fixed Assets, b. drawing up a destruction report on the destruction of fixed assets, c. active fixed assets should be transferred to premises for their reuse, d. the accounting of revenue should be carried out when the receivable is created, e. creating provisions for uncollective receivables , f. daily Bank and Cash reconciliation, g. setting up an internal control unit , h. adoption of a regulatory decision regulating the procedure for the collection and attestation of revenue from deductions on the gross revenues of the Teaching Research Staff.

The Hellenic Court of Audit will carry out a follow-up audit. 

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